Forex, or foreign exchange, is the largest financial market in the world. It is a decentralized market where currencies are traded 24 hours a day, 5 days a week. Unlike other financial markets, such as the stock market, forex markets do not have a closing time. Instead, they operate continuously throughout the week.
Forex markets are open for trading 24 hours a day, from Sunday evening to Friday evening. The market opens on Sunday at 5:00 pm EST (10:00 pm GMT) and closes on Friday at 5:00 pm EST (10:00 pm GMT). This means that forex traders have the opportunity to trade currencies around the clock, regardless of their location or time zone.
The forex market is divided into four major trading sessions: the New York session, the London session, the Tokyo session, and the Sydney session. Each session has its own opening and closing times, which are based on the local business hours of the financial centers in each region.
The New York session is the largest and most liquid trading session, accounting for around 19% of total forex trading volume. It opens at 8:00 am EST (1:00 pm GMT) and closes at 5:00 pm EST (10:00 pm GMT). The London session is the second largest trading session, accounting for around 35% of total forex trading volume. It opens at 3:00 am EST (8:00 am GMT) and closes at 12:00 pm EST (5:00 pm GMT).
The Tokyo session is the third largest trading session, accounting for around 6% of total forex trading volume. It opens at 7:00 pm EST (12:00 am GMT) and closes at 4:00 am EST (9:00 am GMT). The Sydney session is the smallest trading session, accounting for around 4% of total forex trading volume. It opens at 5:00 pm EST (10:00 pm GMT) and closes at 2:00 am EST (7:00 am GMT).
While forex markets are open 24 hours a day, not all trading sessions are created equal. The London session is typically the most volatile trading session, with the highest trading volume and the greatest price movements. This is because it overlaps with the New York session, creating a period of high liquidity and trading activity.
Traders should be aware of the opening and closing times of each trading session in order to take advantage of the most active and profitable trading periods. For example, traders who prefer to trade during periods of high volatility may choose to focus on the London and New York sessions, while traders who prefer a quieter trading environment may choose to focus on the Tokyo and Sydney sessions.
In conclusion, forex markets do not have a closing time. Instead, they operate continuously throughout the week, with four major trading sessions based on the local business hours of the financial centers in each region. Traders should be aware of the opening and closing times of each trading session in order to take advantage of the most active and profitable trading periods.
